Introduction to Total Quality Management

& Practices at Toyota

Presentation by:

Safety Commitment:
I will always follow walking safety rules and
educate others to follow

ISQ Annual Conference 12 Dec 2020

Contents

• Introduction about TQM.

• TQM Benefits.
• The Eight Elements of TQM
• The Principles of TQM & Toyota Best Practices
•Q & A
Introduction to Total Quality management

A Simplistic View of Total Quality Management

Total = Everyone in the Organization is responsible for Quality.

Quality = “ Those product features which meet the needs of Customers and thereby provide
product satisfaction,” or freedom from deficiencies.”

Management = Management is the cycle of planning, doing, studying and acting. All process
undergo the same cycle of management.

TQM = is a Business Management strategy adopted by successful Industries.

Total Quality Management - Evolution of Quality
Long Before TQM
Practices were
formalised Quality
Management systems
have gone through many
phases and evolved to
the present stag towards
creating a more
Profitable, Efficient and
Resilient Organization
focussing on adding
value to all its
stakeholders and the
environment.
Total Quality Management - Benefits
TQM is system of principles, methods and best practices that provide are framework organisation to
strive for excellence in everything they do.

TQM is a leadership practice that has a positive impact on entire work environment. Also helps inbuilding
and Nurturing Leaders and Leadership.

Because TQM provides Employees with opportunities for participation, problem-solving and teamwork, it
creates a level of motivation within each employee

Effective leaders build a solid Foundation that allows them to develop truly committed Employees with
high morale and improve performance. Overall Employee morale is high and sustained over long periods.

Benefits of implementing total quality management “best practices” can be

summarized as:
To the customer - improved quality
To the employee - satisfaction
To the Organisation - better performance.
Total Quality Management - Frame work
➢ Benchmarking
Shewart
➢ Information technology
Deming
➢ Quality management system
Juran
➢ Environmental management
Crosby
system
Ishikawa
➢ Quality function deployment
➢ Quality by design
Tools and ➢ Failure mode and effect analysis
Gurus techniques ➢ Product and Service liability
➢ Total Productive maintenance
Principles Product ➢ Management tools
and and service ➢ statistical process control etc
practices realisation
Customer

People and relationship Approach:

Leadership, Continuous process improvement
customer satisfaction,
employee involvement, Measure:
supplier partnership etc Performance measure
Total Quality Management - Deming’s Model
William Edwards Deming was an American statistician, professor, author, lecturer and consultant. Deming is widely
credited with improving production in the United States during World War II, although he is perhaps best known for
his work in Japan. There, from 1950 onward he taught top management how to improve design (and thus service),
product quality, testing and sales through various methods, including the application of statistical methods.

Deming Chain Reaction approach

Improve quality

Cost decrease

Productivity improve

Capture the market

Stay in the business

Provide jobs and more jobs

Total Quality Management - Deming’s Philosophy (14 Points)

One of TQM models is Deming total quality management philosophy “Famous 14 points”

Dr Deming is credited with providing the foundation of the Japanese quality Miracle.
He developed the following 14 points for managing the improvement of quality, productivity and competitive
position:

1. Create consultancy of purpose for improving products and services

2. Adopt the new philosophy
3. Cease dependence on inspection to achieve quality
4. End the practice of awarding business on price alone; instead, minimise total cost by working with a single
supplier
5. Improve constantly and forever every process for planning production and service
6. Institute training on the job
7. Adapt and Institute leadership
Total Quality Management - Deming’s Philosophy (14 Points)
8. Drive out fear
9. Break down barriers between staff areas
10. Eliminate slogans and targets for the workforce
11. Eliminate numerical quota for the workforce and numerical goals for management
12. Remove barriers that people of pride in their work
13. Institute a dynamic program of education and self improvement for everyone.
14. Put everybody in the company to work to accomplish the transformation
 The Eight Elements of TQM

1. Ethics: Ethics is an individual’s understanding of what is good and bad at the

workplace. Ethics teach an individual to follow code of conduct of organization and
adhere to rules and regulations. Toyota as an Organization follows the mantra
1.Make rules for activities 2. Educate to create awareness 3. If difficult, make it
simple and easy to follow.

2.Integrity: Integrity refers to honesty, values and an individual’s sincerity at

workplace. You need to respect your organization’s policies. Respect your
colleagues and treat them with fairness. Total Quality Management does not work in
an environment where employees criticize and do not co-operate with each other.
We follows a policy where a defect or problem is never attributed to an
individual, members are encouraged to stop and seek support.
 The Eight Elements of TQM
3.Trust: Trust is one of the most important factors necessary for implementation of
total quality management. Trust improves relationship among employees and
eventually helps in better decision making which further helps in implementing total
quality management successfully. At Toyota relationship building is accorded
priority and the organization is structured to promote relationship.

4.Training: Employees need to be trained on Total Quality Management. Managers

need to make their fellow workers aware of the benefits of total quality
management and how would it make a difference in their product quality and
eventually yield profits for their organization. Employees need to be trained on
interpersonal skills, the ability to work as a team member, technical know-how,
decision making skills, problem solving skills and so on. FST training or
Fundamental skill training is an important part of Toyota’s introduction to new
employees and training needs as also retraining and multi-skilling.
 The Eight Elements of TQM
5.Teamwork: Team work is a crucial element of total quality management. Rather
than working individually, employees need to work in teams. When individuals work
in unison, they are in a position to brainstorm ideas and come up with various
solutions which would improve existing processes and systems. Team members
ought to help each other to find a solution and put into place. Zen in Sanka or
involvement by all is promoted through teamwork activities like QCC,
Jishuken, Kaizen, Hiyari Hato and various other campaigns.

6.Leadership: Leadership provides a direction to the entire process of Total

Quality Management. Total Quality Management needs to have a Leader who acts
as a strong source of inspiration for other members and can assist them in decision
making. A leader himself needs to believe in the entire process of TQM for others to
believe in the same. Top-Down approach where the Top Management vision is
percolated downstream through various levels.
 The Eight Elements of TQM
7.Communication: Is the binding force for all elements of TQM. Effective
communication within and outside the organization to all stakeholders is a vital link.
The shift starts and ends with communication meetings which covers safety,
health and change points if any, feedbacks are taken at the end of the shift
which are communicated to the following shift members.

8.Recognition: Recognition is the last and final element in the entire system. It
should be provided for both suggestions and achievements for teams as well as
individuals. Employees strive to receive recognition for themselves and their teams.
Detecting and recognizing contributors is the most important job of a supervisor.
Several recognition schemes like Suggestion awards, Eagle Eye awards,
Performance awards are given to encourage healthy competition and work
place enhancement.
Conclusion : We can conclude that these eight elements are key in ensuring the
success of TQM in an organization and that the supervisor is a huge part in
developing these elements in the work place. Without these elements, the business
Total Quality Management - TQM Principles

1. Customer Focus

8. Mutual beneficial
Supplier relationship 2. Leadership

7. Factual approach to TQM 3. Total Employee Involvement

Decision making < 8 Principles>

6. Continuous 5. System approach to

Management 4. Process Approach
Improvements
TQM Principle - 1
1. Customer Focus:
"Organizations depend on their customers and therefore should understand current and future needs of the
customer, meet customer requirements and strive to exceed customer expectations".
Steps in application of this principle are:

1. Understand customer needs and expectations for products, delivery, price, dependability, etc.
2.Ensure a balanced approach among customers and other stake holders (owners, people, suppliers,
local communities and society at large) needs and expectations.
3. Communicate these needs and expectations throughout the organization.
4. Measure customer satisfaction & act on results, and
5. Manage customer relationships.

It is important to focus on the customer, both internal and external i.e., the employees and
the users of the end product , the customer is the next process and not just a person who
pays for the product or service. This concept helps to strengthen the co-operation within the
organization, eliminate internal competition and drives away fear.
Long term results “ Customer Satisfaction”
We strive to achieve Customer Satisfaction
EDER or Early Detection Early Resolution is an integral
through Zero Defect supply month on
part of Activity to assure not only immediate Customer
month. The White Card from Supplier is an
but also End Customer. This is reflected in the End
affirmation of Quality systems and its
Customer satisfaction rating.
Sustenance.
Internal Customer:Next Process is our Customer
QC Target:
➢ Assembly Line should get 100%
Supplier good parts.
➢ Assembly Line should not stop
PC

Tooling
MFG Assy QA Customer
MNT

Example :
Toyota implemented Kanban System to make its assembly line more efficient. The
objective of the system is to deliver Right Qty, Right time at the Right Place.
 Introduction to Kanban System:
Example :
Toyota implemented Kanban System to make its assembly line more efficient. The
objective of the system is to deliver Right Qty, Right time at the Right Place.

Supplier Kanban Inter-process Kanban

Assembly Location ID No. Sequence No.

1 / 1

B/S-03-08 8
Feeding Location Process

PROCESS-3-1

1
Dolly No
PC Rack Location Part Number Part Name
3
BEARING, CRANKSHAFT,
CKD-47-23 11721-0E020-04 NO.2 Module no

Box Qty Units /Box Supplier

SY
209 Picking104.5
Location STM
Kanban Management Flow
Kanban storage site (Receivingarea)

Supplier Ordering parts

Producing parts

Delivery truck

Collecting Kanban

Kanban post

Kanban is Supplier parts

detached Receiving

Assembly line Parts rack

Working method:
Number of deliveries
Delivery interval
each day

1 - 2 - 2 Delivery delay

Delivery occurs per day (1) / 2 deliveries / 2 delivery delays of Kanban.

The parts corresponding to the 1st withdrawal Kanban will be delivered by the 2nd
delivery next day.

Ｎ day 日 Ｎ＋１day 日 ［Symbols ］

1st time 2nd time 1st time 2nd time
：Collection
：Delivery
TQM Principle - 2
2. Leadership:

"Leaders establish unity of purpose and direction of the organization. They should create
and maintain the internal environment in which people can become fully involved in
achieving the organisation's objectives.“
Steps in application of this principle are:
1. Be proactive and lead by example.
2. Understand and respond to changes in the external environment.
3.Consider the needs of all stake holders including customers, owners, people, suppliers, local
communities and society at large.
4. Establish a clear vision of the organization's future.
5. Establish shared values and ethical role models at all levels of the organization.
6. Build trust and eliminate fear.
7.Provide people with the required resources and freedom to act with responsibility and
accountability.
TQM Principle - 2

8. Inspire, encourage and recognize people's contributions.

9. Promote open and honest communication.
10. Educate, train and coach people.
11. Set challenging goals and targets, and
12. Implement a strategy to achieve these goals and targets.

Employees understand the needs and objectives of the organization and become more
enthusiastic to perform the work, which is reflected on the quality of product and
service. The events are verified and motivate the employees in the Society and its
main objectives. Reducing the misunderstanding and strengthen communication links
between the employees Considering the needs of all parties, including customers and
business owners, employees and suppliers. Develop a clear vision for the future of the
organization.
Company Business Strategy:
Offering good products timely
with cheap price

To carry out social mission

To sustain
To secure the profit
permanently

Prerequisite Creating better

condition for business life for
management employees
 Our Philosophy – Ten Commandment of Quality
1. Failed and Rejected parts to be treated as "Treasure".
First, the phenomenon of failure is to identified and kept as Data for reference. Do MBPE (Genchi-genbutsu Study) and use
tools such as "5 Whys" and FTAAnalysis.

2. BMC (Bench Mark Comparison) to be done to meet specific purpose(s).

Do not always think that what you are doing is correct! To make sincere effort to change the attitude, by which one forgets
ones own idea and learn from others; then feed forward the process(es).

3. Do not hesitate to stop the line!

Get away from the old culture of allowing defective parts to outflow and if detected at a later stage, identify the cause. Ensure
"Quality First", by getting away from "Efficiency First"! That is the best way to reduce effort and improve quality.

4. Do not change Process Condition!

Once process conditions are changed, these Change Points affect Quality. Whenever you want to improve productivity, first,
process line shall be kept as short as possible.

5. Do not misunderstand inspection as check!

Inspection job is not to identify and reject failures. Real inspection is to improve the process by collecting data, analyse the
data and thus prevent failure from being manufactured and prevent outflow to next process.
 Basic Philosophy – Ten Commandment of Quality
6. Take Quick Action to Repair the Machine that Breaks-down frequently
Hold the Stick before falling down. Undertake Trend Control Management of Critical Processes that seem risky or to some
extent dangerous.

7. Do Change Point Management to those lines whose Process Capability is good!

To manage maintenance system so that Change Point is easily detected and recorded. The system to be designed to trigger all
identified change points. Such triggers to be recorded Process wise and Time wise.

8. Do "Real Visualization (Mieruka)", not for "Just Show (Miseruka)"!

Visualization is not only to display the current status and data on the board, but more importantly to really use the
visualization of data to make real improvement of the process.

9. Set yourself highly stretched Quality Target!

Firstly to set highly stretched Quality Target, then to establish Goal keeping at every Process, to stick to detailed investigation
by digging into information, and eliminate all problems one by one. In order to make progress, it is not good to keep old
targets. Times are changing.

10. Educate and train to create professional men of quality!

To educate and train all your members to effectively use all the five sense - smell, feel, sight, hearing and touch to find out
where is the root cause and also educate and train in order to enable them to behave in accordance with set principles and
standards.
Thank you….